VAT land and property

VAT is a transaction based, self-assessed tax. It is essential that a trader considers the VAT implications of any transaction before proceeding. Once transactions have been entered into, the VAT position is effectively set in stone. Mistakes can be impossible or at best difficult and costly to correct. Whenever your business is planning to acquire or to develop/ modify property, you will need to consider the VAT treatment thereof.

Issues to consider include:

  • VAT incurred on the purchase of land
  • Option to tax
  • VAT on acquisition, lease and sale
  • VAT on new build
  • VAT on reconfiguration
  • VAT on change of use
  • VAT on energy saving adaptations
  • VAT on disabled adaptations
  • Self-supply of construction services
  • VAT reverse charge for construction services
  • Capital goods scheme and its effect on subsequent disposals
  • Certification requirements


Although mistakes can be costly, the good news is that significant savings are often available, particularly for partially exempt and other businesses which cannot recover all their input VAT, providing that appropriate steps are taken at the correct time.

4 Eyes Ltd has considerable expertise in VAT land and property issues, advising building companies; private developers; housing associations; charities; schools and colleges; etc. We will be pleased to provide an expert opinion as early as scheme appraisal stage for any project. We can also review recent projects or those currently underway to identify any possible savings.